Finix Competes with Stripe by Offering Payment Facilitation
Summary
Becoming a payfac means that the ISV as master merchant is responsible for paying their submerchants for processed sales every day, having tools in place to screen for fraud and ensure regulatory compliance, and also provide customer service on any exception items that arise. Finix software drastically shortens the time to market for ISVs looking to become a payfac with a turn-key platform. Building business in what has turned out to be a narrow target market is an educational process with a long sales cycle, a difficult topic is quarterly business reviews where the board expects to see solid and steady revenue growth. What we’ve done now is become the payments facilitator ourselves, so that we can not only provide the payments, but also all the back office requirements and compliance certifications, so that our customers can get up and running in a matter of days, rather than months.” Offering a turn-key payfac platform greatly expands the ISV target market for Finix, with the ability to build more immediate opportunities with a much clearer and shorter sales cycle. Finix recently raised a $35 million Series B led by Sequoia, and in an unusual twist just one month later, Sequoia walked away from the deal in which it reportedly wrote the self-described payments infrastructure company a $21 million check.